Selected transactions of Daffodil Ltd are listed below:
1. Ordinary shares are sold for cash.
2. Debentures are issued for cash at a discount.
3. Interest on a short-term note receivable is collected.
4. Merchandise is sold to customers for cash.
5. Cash is paid to purchase inventory.
6. Equipment is purchased by signing a 3-year, 10% note payable.
7. Cash dividends on ordinary shares are declared and paid.
8. One hundred shares of XYZ ordinary shares are purchased for cash.
9. Land is sold for cash at its carrying value.
10. Unsecured notes payable are converted into ordinary shares.
Required: Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity or (d) a non-cash investing and financing activity

Question

Selected transactions of Daffodil Ltd are listed below:
1. Ordinary shares are sold for cash.
2. Debentures are issued for cash at a discount.
 3. Interest on a short-term note receivable is collected.
 4. Merchandise is sold to customers for cash.
 5. Cash is paid to purchase inventory.
 6. Equipment is purchased by signing a 3-year, 10% note payable.
 7. Cash dividends on ordinary shares are declared and paid.
 8. One hundred shares of XYZ ordinary shares are purchased for cash.
 9. Land is sold for cash at its carrying value.
 10. Unsecured notes payable are converted into ordinary shares.
Required: Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity or (d) a non-cash investing and financing activity

Quizplus · Accepted Answer

The Answer of Selected transactions of Daffodil Ltd are listed below:
1. Ordinary shares are sold for cash.
2. Debentures are issued for cash at a discount.
 3. Interest on a short-term note receivable is collected.
 4. Merchandise is sold to customers for cash.
 5. Cash is paid to purchase inventory.
 6. Equipment is purchased by signing a 3-year, 10% note payable.
 7. Cash dividends on ordinary shares are declared and paid.
 8. One hundred shares of XYZ ordinary shares are purchased for cash.
 9. Land is sold for cash at its carrying value.
 10. Unsecured notes payable are converted into ordinary shares.
Required: Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity or (d) a non-cash investing and financing activity

Selected Transactions of Daffodil Ltd Are Listed Below